Investing in Health and Wellness

The US consumer services industry is being redefined. At the intersection of rising consumer expectations, innovative delivery models, and shifting wellness norms, lies one of the most exciting market opportunities: health and wellness services.

Valued at $40-45bn in the US and growing at pace, the health and wellness services sector is no longer a niche. Spanning medspas, temperature contrast, IV therapy, longevity clinics and weight-loss and hormone treatments, (and more) this market is reshaping how consumers think about self-care, recovery, preventative aging, and long-term health. For investors, operators and brands, it represents a strong window of opportunity.

Consumer Shifts in health and wellness

Consumers are demanding more from their wellness routines – more personalization, more science-backed techniques, more seamless experiences. In parallel, services once reserved for medical settings are being reimagined through franchised, accessible, customer-friendly formats. Consumers are now able to access services through a handful of established chains, who have been building up brand equity and loyalty, and experiencing double digit growth across categories. In particular, weight-loss and hormone clinics have seen explosive demand, driven by increased usage of GLP-1s.

Importantly, many of these categories remain in early stages of market penetration, creating ample headroom for growth with new customer demographics.

Fundamentals and Commercial Value

Beyond consumer momentum, the underlying economics of the health and wellness sector make a compelling case for investment: strong market growth has supported rapid site rollout and brand franchising. Growth in the industry is expected to continue as consumer demand for preventative health, self-care and longevity services increases. In addition, specialist services offered by health and wellness clinics have high ticket prices – driving high average revenues per site  (typically around $400k-$4 million, though there are variances in categories), and in turn lucrative EBITDA margins (typically ranging from 10-40%). This enables a typical payback period of 2-4 years.

There are also several meaningful scale and operating upsides: